Some strategies, for example, require a large time commitment and constant observation of the chart. If you have a full-time job, such a strategy may simply not be feasible. It is equally important to understand the strategy.

You understand your strategy when you know what results to expect. You understand and can identify on the chart the signals of the strategy. You know what money management to use. It is also very important that you are able to execute trades based on the rules of the strategy. Here it is of course very helpful to try the strategy on a demo account available at IQ Option. The next logical step would be to trade small amounts in order to eventually scale the strategy to your acceptable risk level.

There is also the question of mood. I am not joking. It is very important that you feel comfortable using your strategy. Then and only then will it be the best IQ Option strategy for you. Because of the factors I just mentioned above, it is very difficult to consider which strategy has the best effectiveness. Technical analysis methods implemented in investment strategies always have some elements that are subjective. Of course, the less subjective the better.

The point is that two traders can use the same strategy and both can achieve different results. Testing the effectiveness of a strategy should therefore be done by testing the results of one person using one strategy. It is, of course, helpful to keep a trading journal. The logbook allows you to examine the historical data on effectiveness. At the same time, it helps to evaluate the strategy and supports the introduction of changes that will improve the effectiveness.

But consistency in what? For starters, these traders will choose a trading strategy that has been proven to make profits. No trading strategy is superior to the other. It's how and where the strategy is applied that matters. That said, traders who make money only have a few trading strategies. Each is applied to a specific market. For example, one strategy is used in currency markets and only when the prices are trending. That same strategy cannot be used in commodities markets when the prices are ranging.

This means that successful traders understand that what works in one market won't necessarily work in another. The first thing to always do when you come across a new trading strategy is to test it in your demo account. Not once, but several times in different markets.

Keep the trading strategies that work best for you. Also, decide on the markets you want to trade in. I would recommend just a few related markets. For example, if you prefer commodities you could choose gold and silver, if you prefer currencies, you could choose just a few pairs.

Choosing a few markets to trade in gives you the chance to study them. With time, you can instinctively know how a market is likely to move just by looking at its charts. Your next step should be choosing the appropriate money management strategies as well as the timing of your trades.

This is why you can follow these trading tips to stay ahead of the competition and make profits consistently. The forex market is very volatile hence you cannot trade blindly and expect to see profits. This is why we present you certain tips and strategies for trading forex successfully in IQ Option.

Fundamental analysis is crucial for any forex trader. It consists of monitoring the market conditions and following the market news. It is the first step a trader should perform when trading forex. After the fundamental analysis, another important part is technical analysis.

To perform technical analysis a trader should use some technical tools such as charts, trend lines, support and resistance lines, and price action. Combine the fundamental and technical analysis and form your strategy accordingly. If a strategy is bringing you consistent results, stick to it. If not, then consider revising your strategy.

Invest a small percentage of your account on single trades, use stop losses and take-profits, and utilize hedging. If required, you can also use advanced stop losses such as trailing stop loss. Even after placing the trade you should constantly monitor your trades and keep an eye in case the market moves against your position in the opposite direction rapidly.

Close the trade if necessary. In this case, your best bet would be to not open any new deals. Instead, you could focus on other aspects of your trading such as:.

Conduct technical research and find out the lacking in your trading strategy. Technical analysis can help you strategize for individual trading assets and time frames. Have faith in your trading system. When you panic, you tend to commit trading errors which later prove to be costly. By staying cool-headed you can take better decisions. Stop losses will help you control your losses and protect your profits.

When the market price breaks a major area of resistance, adjust your stop-loss accordingly. Trading charts display the price movement of an asset over a particular period of time.

There are different types of chart that will be discussed below. Graphical tools consist of drawing tools used for creating technical analysis. The various graphical tools of IQ Option will be discussed down below. Novice traders are guilty of one major mistake when using charts. They use the default line chart. There is nothing wrong with using a line chart but they are missing out so much information by not using other charts available to them.

We will list and give a short explanation of the different types of chart available in IQ Option. The line chart is the most basic. It displays the closing price of each period. Other than that, there are no additional details available. So, it makes them cleaner to view compared to other charts. Line charts can, however, be used for observing long-term trends and picking out specific chart trends. As the name suggests, candlestick charts contain candles, where each candle is the range between the opening and closing price of the asset.

The lines above and below the candles represent the upper and lower wick, respectively. They can easily add price action candlestick patterns such as Doji, Piercing Line, Morning Star, Three Black Crows, and many others. These allow further analysis for price prediction. The difference between candles in width represents the relationship between them. These four pieces of data from a bar chart are crucial to understanding the relationship between them.

Bar charts occupy less space than candlestick charts while displaying more information. The important price action bar patterns are reversal bar, exhaustion bar, Pinocchio bar, two-bar reversal, and others. Heikin-Ashi means an average bar in Japanese. This indicator combines the open-close data from the previous data and the open-close data of the current period to create a combo candlestick. Unlike regular candlesticks, bullish or bearish patterns containing one to three candlesticks are not to be found.

Heikin-Ashi is used to predict trending periods and reversal points. You can monitor price changes of multiple assets by simultaneously opening several windows. Also, a trader can view the trend of a single asset in different scales and times by opening that same asset multiple times and customizing the parameters.

This feature is extremely useful for traders who use capital management strategy. Professional traders use multi-charts to determine the correlation between interdependent assets. You can also utilize the parabolic SAR indicator to determine the trend change. If the indicator knobs are below the chart, they will probably ascend. In a nutshell, multi-charts help you take a more informed decision by providing you with objective information. You can draw various types of lines on the charts for market analysis.

There are five types of line that you can draw. These lines are primarily used for three purposes; trend lines, support lines, and resistance lines. A basic assumption when doing technical analysis is that prices trend. And an important element of technical analysis is trend lines. Trend lines are used to identify and confirm the trends. A trend line is a straight line that connects at least two price points. These lines are then extended into future time periods where they act as support or resistance lines.

The uptrend line has two or more points that connect, form an upward slope. Moreover, the points are low, and the second low point must be higher than the first low point. When three such points are connected, it is considered to be a good uptrend line. The upward trend shown here indicated that the demand is increasing more than the supply, which indicated a price increase.

This market is considered bullish, and it remains so as long as the prices stay above the trend line. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. The downtrend line is the exact opposite of an uptrend line. This line has two or more high points where the second-highest point must be lower than the first high point.

The downtrend line indicates that the supply is increasing at a faster pace than the demand. This market is considered to be bearish, and it remains so as long as the prices stay below the trend line. Other metrics, such as the angle of the trend line also indicate the movement of the market. Support is the price level at which the demand is considered to be strong enough to prevent the price from dropping further. In IQ Option, to draw a support line, you need to select the graphical tools option and then select the horizontal line.

Resistance is the price level at which the supply is considered to be strong enough to prevent the price from increasing further. The idea here is that as the price level reaches the resistance levels, sellers get the urge to sell while the buyers become less interested to buy.

At one point, the price level will match with the resistance level and at this point, the supply will exceed the demand and prevent the price from rising above the resistance level. Like support levels, resistance levels break too.

This means that the buyers are willing to buy at a higher price. A new resistance level is established at this point. In IQ Option, to draw a resistance line, you need to select the graphical tools option and then select the horizontal line. You can draw trends, support and resistance levels using lines, trend line, and horizontal line.

There are two other lines available in IQ Option. Vertical lines and Fibonacci lines. You can use vertical lines to record time within the data series. Fibonacci lines indicate an area of support or resistance. They are a series of horizontal lines.

Fibonacci lines adhere to the Fibonacci golden ratio of 1. It visually represents whether the majority of the traders are buying or selling. You can find the widget on the left side of the trading platform. The green colored section represents the percentage of buyers of that asset and the red colored section represents the percentage of sellers. However, you are still unsure. Knowing that you are going with the crowd will assure you and open your position with confidence.

Alligator is a trend indicator. It signals a new trend, identifies its direction, and displays its strength. Together, MACD serves as a signal generator for entry and exit points, whereas Bollinger Bands serve as a signal filter. This indicator can combine with an oscillator indicator to confirm the momentum of a certain direction. One of the oscillator indicators that combines extremely well with Ichimoku is Relative Strength Index RSI.

IQ Option has a vast variety of trading tools, lines, indicators, and sentiment analysis that you combine and form the best possible strategy in your trading game. They are also famous for their hassle free withdrawal and deposit method and their transparency. Whatever financial instruments you trade, there is a high risk of losing money due to market volatility and uncertainty.

Keep your leverage low, diversify your asset index, make use of the trading tools and indicators, use risk management tools like stop losses and take profits. You can follow the IQ Option strategy, tips and tricks we listed here and also the ones recommended by IQ Option and we hope it will ensure you a profit.

By Binoption. Last Updated: Home » Binary Options Strategy » Best IQ Option Strategy- IQ Option Tips For Winning Trades. Best IQ Option Strategy- IQ Option Tips For Winning Trades.

We will start with best strategies for IQ Option. Best IQ Option Strategy — Price Action. They are versatile and provide a lot of analysis for price prediction. Here we will list out most used price action strategies for candlestick and bar patterns. When the Stochastic touches the dashed line above, we enter down or with a Put. When the Stochastic touches the dashed line below, we enter up or with a Call.

The ideal time of day to use the IQ Option Special Strategy is the hours outside the period of increased volatility. You should also avoid times when important news will be announced. Although the strategy can work during more volatile periods, there is a greater chance for error. To request the strategy leave a comment below requesting the submission of the IQOption Special Strategy.

This will be sent to the email address in the comment. The strategy is free to anyone. Just leave your email in the chat or comments that will be sent, free of charge. Risk Warning: The financial products offered by the company carry a high level of risk and may result in the loss of all its funds.

You should never invest money that you cannot afford to lose.

Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return.

With a little effort, traders can learn how to take advantage of the flexibility and power that stock options can provide. Here are 10 options strategies that every investor should know. With calls, one strategy is simply to buy a naked call option. You can also structure a basic covered call or buy-write. This is a very popular strategy because it generates income and reduces some risk of being long on the stock alone.

The trade-off is that you must be willing to sell your shares at a set price—the short strike price. To execute the strategy, you purchase the underlying stock as you normally would, and simultaneously write—or sell—a call option on those same shares.

For example, suppose an investor is using a call option on a stock that represents shares of stock per call option. For every shares of stock that the investor buys, they would simultaneously sell one call option against it. This strategy is referred to as a covered call because, in the event that a stock price increases rapidly, this investor's short call is covered by the long stock position.

Investors may choose to use this strategy when they have a short-term position in the stock and a neutral opinion on its direction. Because the investor receives a premium from selling the call, as the stock moves through the strike price to the upside, the premium that they received allows them to effectively sell their stock at a higher level than the strike price: strike price plus the premium received.

In a married put strategy, an investor purchases an asset—such as shares of stock—and simultaneously purchases put options for an equivalent number of shares. The holder of a put option has the right to sell stock at the strike price, and each contract is worth shares. An investor may choose to use this strategy as a way of protecting their downside risk when holding a stock.

This strategy functions similarly to an insurance policy; it establishes a price floor in the event the stock's price falls sharply. This is why it's also known as a protective put. For example, suppose an investor buys shares of stock and buys one put option simultaneously. This strategy may be appealing for this investor because they are protected to the downside, in the event that a negative change in the stock price occurs.

At the same time, the investor would be able to participate in every upside opportunity if the stock gains in value. The only disadvantage of this strategy is that if the stock does not fall in value, the investor loses the amount of the premium paid for the put option. With the long put and long stock positions combined, you can see that as the stock price falls, the losses are limited.

However, the stock is able to participate in the upside above the premium spent on the put. In a bull call spread strategy, an investor simultaneously buys calls at a specific strike price while also selling the same number of calls at a higher strike price. Both call options will have the same expiration date and underlying asset. This type of vertical spread strategy is often used when an investor is bullish on the underlying asset and expects a moderate rise in the price of the asset.

Using this strategy, the investor is able to limit their upside on the trade while also reducing the net premium spent compared to buying a naked call option outright. For this strategy to be executed properly, the trader needs the stock to increase in price in order to make a profit on the trade.

The trade-off of a bull call spread is that your upside is limited even though the amount spent on the premium is reduced. When outright calls are expensive, one way to offset the higher premium is by selling higher strike calls against them. This is how a bull call spread is constructed. The bear put spread strategy is another form of vertical spread. In this strategy, the investor simultaneously purchases put options at a specific strike price and also sells the same number of puts at a lower strike price.

Both options are purchased for the same underlying asset and have the same expiration date. This strategy is used when the trader has a bearish sentiment about the underlying asset and expects the asset's price to decline. The strategy offers both limited losses and limited gains. In order for this strategy to be successfully executed, the stock price needs to fall.

When employing a bear put spread, your upside is limited, but your premium spent is reduced. If outright puts are expensive, one way to offset the high premium is by selling lower strike puts against them.

This is how a bear put spread is constructed. A protective collar strategy is performed by purchasing an out-of-the-money OTM put option and simultaneously writing an OTM call option of the same expiration when you already own the underlying asset.

This strategy is often used by investors after a long position in a stock has experienced substantial gains. This allows investors to have downside protection as the long put helps lock in the potential sale price. However, the trade-off is that they may be obligated to sell shares at a higher price, thereby forgoing the possibility for further profits.

The investor could construct a protective collar by selling one IBM March call and simultaneously buying one IBM March 95 put. This is a neutral trade set-up, which means that the investor is protected in the event of a falling stock.

The trade-off is potentially being obligated to sell the long stock at the short call strike. However, the investor will likely be happy to do this because they have already experienced gains in the underlying shares. A long straddle options strategy occurs when an investor simultaneously purchases a call and put option on the same underlying asset with the same strike price and expiration date. An investor will often use this strategy when they believe the price of the underlying asset will move significantly out of a specific range, but they are unsure of which direction the move will take.

Theoretically, this strategy allows the investor to have the opportunity for unlimited gains. At the same time, the maximum loss this investor can experience is limited to the cost of both options contracts combined. This strategy becomes profitable when the stock makes a large move in one direction or the other.

In a long strangle options strategy, the investor purchases a call and a put option with a different strike price: an out-of-the-money call option and an out-of-the-money put option simultaneously on the same underlying asset with the same expiration date.

An investor who uses this strategy believes the underlying asset's price will experience a very large movement but is unsure of which direction the move will take. For example, this strategy could be a wager on news from an earnings release for a company or an event related to a Food and Drug Administration FDA approval for a pharmaceutical stock.

Losses are limited to the costs—the premium spent—for both options. Strangles will almost always be less expensive than straddles because the options purchased are out-of-the-money options.

This strategy becomes profitable when the price of the stock, either up or down, has significant movement. The investor doesn't care which direction the stock moves, only it moves enough to place one option or the other in-the-money. It needs to be more than the total premium the investor paid for the structure. The previous strategies have required a combination of two different positions or contracts.

In a long butterfly spread using call options, an investor will combine both a bull spread strategy and a bear spread strategy. They will also use three different strike prices.

All options are for the same underlying asset and expiration date. For example, a long butterfly spread can be constructed by purchasing one in-the-money call option at a lower strike price, while also selling two at-the-money call options and buying one out-of-the-money call option. A balanced butterfly spread will have the same wing widths. An investor would enter into a long butterfly call spread when they think the stock will not move much before expiration.

The maximum loss occurs when the stock settles at the lower strike or below or if the stock settles at or above the higher strike call.

This strategy has both limited upside and limited downside. In the iron condor strategy, the investor simultaneously holds a bull put spread and a bear call spread. The iron condor is constructed by selling one out-of-the-money OTM put and buying one OTM put of a lower strike—a bull put spread—and selling one OTM call and buying one OTM call of a higher strike—a bear call spread.

All options have the same expiration date and are on the same underlying asset. Typically, the put and call sides have the same spread width. This trading strategy earns a net premium on the structure and is designed to take advantage of a stock experiencing low volatility. Many traders use this strategy for its perceived high probability of earning a small amount of premium.

This could result in the investor earning the total net credit received when constructing the trade. The further away the stock moves through the short strikes—lower for the put and higher for the call—the greater the loss up to the maximum loss. Maximum loss is usually significantly higher than the maximum gain. This intuitively makes sense, given that there is a higher probability of the structure finishing with a small gain. In the iron butterfly strategy, an investor will sell an at-the-money put and buy an out-of-the-money put.

At the same time, they will also sell an at-the-money call and buy an out-of-the-money call. Although this strategy is similar to a butterfly spread, it uses both calls and puts as opposed to one or the other.

It is common to have the same width for both spreads. The long, out-of-the-money call protects against unlimited downside.

The long, out-of-the-money put protects against downside from the short put strike to zero. Profit and loss are both limited within a specific range, depending on the strike prices of the options used.

Investors like this strategy for the income it generates and the higher probability of a small gain with a non-volatile stock. The maximum gain is the total net premium received. Maximum loss occurs when the stock moves above the long call strike or below the long put strike. A sideways market is one where prices don't change much over time, making it a low-volatility environment.

Short straddles, short strangles, and long butterflies all profit in such cases, where the premiums received from writing the options will be maximized if the options expire worthless e.

Protective puts are insurance against losses in your portfolio. Like all other types of insurance, you pay a regular premium to the insurer and hope that you never need to file a claim.

The same is true for portfolio protection: you pay for the insurance, and if the market does crash, you'll be better off than if you didn't own the puts. A calendar spread involves buying selling options with one expiration and simultaneously selling buying options on the same underlying in a different expiration. Calendar spreads are often used to bet on changes in the volatility term structure of the underlying.

You know what money management to use. This is a very popular strategy because it generates income and reduces some risk of being long on the stock alone. Both call options will have the same expiration date and underlying asset. I really like this type of question. If a strategy is bringing you consistent results, stick to it.

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